Hidden bank charges are one of those costs that most businesses only notice after they’ve already affected the bottom line. From card processing fees to maintenance costs, these small deductions can quietly eat into profit margins each month.
Open Banking offers a way out. By connecting directly to customers’ bank accounts, businesses can move money instantly, reduce dependency on card networks, and cut several hidden bank charges that traditional payment methods often include.
This guide explores 10 common bank charges UK businesses can eliminate by adopting Open Banking–based payments and data solutions.
10 Hidden Bank Charges You Can Eliminate
1. Card Processing Fees
Card payments might feel convenient, but they carry some of the highest hidden bank charges for businesses. Each transaction typically includes card network fees, interchange fees, and gateway mark-ups.
With Open Banking, payments move directly between bank accounts — eliminating card networks and cutting processing costs by up to 90%.
2. Wire Transfer Fees
Traditional wire transfers are another source of unnecessary bank charges, especially for domestic payments. They’re slower and often include intermediary deductions.
By using Open Banking and the UK’s Faster Payments network, funds can move instantly at a fraction of the cost.
3. Currency Conversion Mark-ups
Many businesses lose money through hidden conversion spreads built into FX rates. These aren’t always visible as line items, but they inflate overall bank charges when sending or receiving funds in multiple currencies.
Open Banking offers more transparent exchange options through connected financial institutions, helping you see and avoid inflated rates.
4. Payment Gateway Fees
Every time a card transaction passes through a third-party gateway, small deductions occur in the form of hidden bank charges. These can range from processing markups to per-transaction service costs. Open Banking removes this middle layer by enabling direct account-to-account payments, helping businesses save significantly on each transaction.
5. Manual Transaction Handling Fees
Some banks still charge extra for manual processes such as cheque deposits, paper-based statements, or in-branch verifications. These outdated workflows not only slow operations but also add to cumulative bank charges over time. By switching to Open Banking, all transaction data and payment approvals become digital, allowing you to cut manual fees and speed up processing.
6. Reconciliation and Admin Costs
Manual data entry, transaction matching, and payment verification all create hidden operational bank charges. With automated transaction data delivered through Open Banking, finance teams save hours each month turning what was once a recurring internal cost into a streamlined digital process.
7. Minimum Balance Fees
Many business accounts apply bank charges if your balance drops below a set limit. Open Banking gives you real-time visibility across all connected accounts, helping you shift funds instantly to maintain the required balance and avoid penalties.
8. Failed Payment Penalties
Failed or returned payments can lead to retry fees or administrative costs that appear as unexpected bank charges. Open Banking payments verify funds before initiating transfers, drastically reducing payment failures and the related fees that come with them.
9. Refund Processing Charges
Traditional card refunds can take several days and may include extra service fees. Open Banking enables instant refunds between bank accounts, removing the wait times and cutting down unnecessary bank charges tied to customer reimbursements.
10. Paper or Manual Service Fees
Some banks still charge extra for paper statements, cheque handling, or in-branch services. These small but recurring bank charges add up quickly.
With Open Banking, all transaction data is digital and securely accessible through APIs — no paper, no manual processing, and no additional costs.
How You Can Do It with Finexer
Finexer enables UK businesses to handle payments and financial data through Open Banking faster, cheaper, and more securely. Instead of paying overhead bank charges on every transaction, Finexer gives you full visibility and control.
1. Direct Account-to-Account Payments
Move money instantly between UK bank accounts using the Faster Payments network. No card networks, no intermediaries, and no expensive per-transaction mark-ups — just direct transfers with predictable costs.
2. Real-Time Financial Data
Access live account information from 99% of UK banks to track balances, monitor transactions, and avoid overdraft-related bank charges before they occur.
3. Instant Refunds and Reconciliation
Automated refunds and data-rich payment records help you cut admin time and remove hidden costs linked to manual reconciliation and refund delays.
4. Flexible, Usage-Based Pricing
Finexer’s pricing model ensures you pay only for what you use — no setup fees, no expensive maintenance charges, and no surprise deductions.
5. FCA-Authorised & Fast to Deploy
Built on FCA-authorised infrastructure, Finexer deploys up to 3x faster than the market average, with full onboarding support for 3-5 weeks to help you get started smoothly.
What are common hidden bank charges for UK businesses?
It includes card fees, wire transfer costs, refund deductions, and manual service fees that reduce profit margins without clear visibility.
How can Open Banking help reduce bank charges?
Open Banking enables direct account-to-account transfers, removing intermediaries and eliminating extra bank charges linked to payment processing and admin costs.
Are Open Banking payments cheaper than card transactions?
Yes. Open Banking cuts bank charges by avoiding card networks and interchange fees, offering faster, lower-cost payments for UK businesses.
Eliminate Unnecessary Bank Charges Today!
Try Finexer’s Open Banking API with zero setup cost and usage-based pricing.